Source URL: https://www.theregister.com/2024/12/04/sap_legacy_erp_cloud/
Source: The Register
Title: SAP legacy ERP users wise to ignore offer of single leap to the cloud
Feedly Summary: Multi-stage journey preferred in high-risk switch, says user group chair
According to the chair of the SAP UK and Ireland user group, users of its legacy on-prem ERP systems are set to upgrade their software before they move to the cloud, eschewing the vendor’s preferred method as a first step.…
AI Summary and Description: Yes
Summary: The text discusses the cautious approach of SAP ERP users transitioning from legacy on-prem ECC systems to the cloud via RISE with SAP. It highlights the necessity of a phased upgrade process due to the complexities and risks involved, as expressed by Conor Riordan from the SAP UK and Ireland user group. The text offers insights into how enterprises are managing this transformation and their considerations regarding support timelines and vendor communication.
Detailed Description:
The article provides an overview of the current challenges faced by SAP users when migrating from legacy ERP systems to the cloud, specifically through the RISE with SAP offering. Key insights include:
– **Cautious Migration**: Users are hesitant to migrate both software (from ECC to S/4HANA) and infrastructure (to the cloud) simultaneously due to significant business risks.
– **RISE with SAP**: Launched in January 2021, RISE aims to facilitate the transition to cloud environments without the immediate need for software upgrades, but is seen by some as an inadequate solution for large enterprises.
– **Step-by-Step Approach**: Riordan stresses the importance of a phased approach for larger organizations, suggesting a route that transitions from ECC on-premises to S/4HANA on-premises, and finally to RISE with SAP and the cloud—rather than attempting to achieve everything at once.
– **Support Deadline Concerns**: SAP plans to end mainstream support for ECC by December 31, 2027, which adds pressure on companies to plan their transition carefully to avoid operational risks.
– **AI and Innovation Access**: There has been criticism regarding SAP’s communication, notably around enterprise AI innovations being exclusive to cloud versions of S/4HANA, which raises concerns among users about misinformation regarding their available options.
– **User Feedback and Vendor Relations**: The text emphasizes that SAP users are actively involved in negotiations regarding contracts, especially for RISE, indicating a shift in how users are engaging with vendor relationships amid changing market dynamics.
This message is significant for security and compliance professionals as it outlines the complexities of moving critical enterprise systems to the cloud, emphasizing the need for strategic planning to mitigate risks associated with system upgrades and vendor dependencies. Understanding these dynamics can aid professionals in distinguishing their security frameworks and compliance mechanisms as organizations transform their infrastructures.